Bleecker Street Research
Long/short equity, special situations

University General Health Services: A Good Short

[Editor's Note, August 27: This article has been revised since original publication, as the author has made changes to the content]

University General Health Systems (UGHS.OB) is a regional multi-specialty health care provider that is based in Houston. While I believe that the UGHS business model once showed promise, issues have plagued the company. UGHS is currently trading at $.56/share and has a market cap of $185 million. At these levels, I don't believe that the market has priced in the issues facing UGHS properly, leaving it overvalued.

Business Model

The UGHS business model is as follows:

"A diversified, integrated, multi-specialty health care provider that delivers concierge physician and patient oriented services providing timely and innovative health solutions that are ...
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